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Home Equity

September 11, 2011 | Liz Weston, Money Talk
Dear Liz: I was laid off in November 2009. For the first year, I took the unemployment and tried to find a job without success. So, in late 2010, I started my own business, contracting mainly for employers for whom I used to work. Unfortunately, I am making about a third of what I used to make, and even after cutting expenses, there are months that I can't pay my bills. I have taken two withdrawals from my self-directed IRA this year. Is that the smartest thing to do? Or should I even out my cash flow by writing myself loans from my home equity line of credit?
December 18, 2011 | Liz Weston, Money Talk
Dear Liz: We are getting coaching from a finance advisor. He suggests using a home equity line of credit as investment capital. Your opinion on this? Answer: You're not dealing with a financial advisor who has your best interests at heart. You're dealing with a salesman who is mostly, if not solely, concerned about the commission he's going to earn from selling you an insurance or investment product should you take his unsound advice. Borrowing to invest is a risky strategy.
August 28, 2005 | David Streitfeld, Times Staff Writer
As they happily watch their houses swell in value, Americans are changing their attitudes toward mortgage debt. Increasingly, a home is no longer a nest egg whose equity should never be touched, but a seemingly magical ATM enabling the owner to live it up or just live.
February 16, 2013 | By Alejandro Lazo, Los Angeles Times
Bill Sepe has gotten used to rejection. The 28-year-old Rancho Cucamonga native has put in nearly 200 unsuccessful offers since August on Inland Empire homes, varying from typical suburban ranches to classic craftsman homes. All this anguish comes in pursuit of a modest home in the exurb of San Bernardino County, the epicenter of the Southern California housing crash. Plummeting values here sparked a vicious wave of foreclosures. But it's precisely because prices fell so far here that Sepe can't buy a house now. In a sharp irony, many would-be homeowners in hard-hit markets can't compete with a flood of all-cash offers from investors, some backed by Wall Street war chests.
March 1, 2008 | From Times Wire Services
JPMorgan Chase & Co. said in a regulatory filing that it expected about $450 million in home equity loan losses for the first quarter, and that home equity losses could be double that by the fourth quarter. The filing elaborated on information given to investors during JPMorgan's Investor Day on Wednesday, when bank executives said they expected loan charge-offs to increase sharply in 2008.
January 18, 2013 | By Dawn C. Chmielewski
A breach-of-contract suit filed against comedian Adam Carolla by three former business associates suggests that the new media world may not be all that different from old Hollywood. Producer Donny Misraje -- who claims to have persuaded the radio and television personality and longtime friend to use podcasts to reach his listeners -- filed suit against Carolla on Thursday in Superior Court in Los Angeles.  Misraje is joined in the suit by his wife, Kathee Schneider-Misraje, a creative director, and Sandy Ganz, who helped rebuild and maintain websites for the company's podcasts and co-hosted a show, "CarCast," with Carolla.  The trio allege Carolla failed to distribute their share of the profits in the podcasting business -- or even provide an accurate accounting of the books -- in violation of an oral partnership agreement.
March 8, 2008 | From Times Wire Services
Borrowing rose in January as Americans spent twice as much on their credit cards as they did a month earlier. Consumer credit grew by $6.9 billion to $2.52 trillion, the Federal Reserve reported. Analysts said people once dependent on home-equity loans were turning to other forms of short-term financing after the sub-prime mortgage crisis made it harder to qualify for loans.
February 4, 1996 | CARLA LAZZARESCHI
Q. I am thinking of taking out a home equity loan in order to purchase a new car. My thought is that since home equity mortgage interest is deductible on my taxes, while consumer interest is not, I am better off, tax-wise, getting a deduction for loan I will invariably have to get to buy this car. Does my plan make sense, and is it permissible? --C.Y.B. * A.
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